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Critical phenomena in the market of competing firms induced by state interventionism

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  • Chorowski, Michał
  • Kutner, Ryszard

Abstract

We achieve two primary goals in this work. First, we propose a flexible algorithm that can simulate various scenarios of state/government intervention. Secondly, we analyze the scenario exhibiting the critical behavior of the market of competing firms, which depends on the degree of government intervention and the activity level of the firms. Thus, we have analyzed the second-order phase transition series, finding the levels of critical intervention and the critical exponent values. As a result, we have observed a sharp increase of fluctuations at a critical intervention level and the local breakdown of the average market technology relative to the frontier technology.

Suggested Citation

  • Chorowski, Michał & Kutner, Ryszard, 2021. "Critical phenomena in the market of competing firms induced by state interventionism," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 578(C).
    • Handle: RePEc:eee:phsmap:v:578:y:2021:i:c:s0378437121003757
    DOI: 10.1016/j.physa.2021.126102
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